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I got into a conversation with a work colleague this evening about

the economy and house prices and we were of the same opinion

on most areas (ie house price falls) but I came unstuck when I started

talking about how the US dollar will affect UK and house prices.

Can anybody simply spell out how a weak US dollar affects UK and it's

implications for house prices?

Help would be appreciated.

Also thanks for comments last week re: my offer of £115k for £120k property.

You will be glad to hear I have withdrawn offer.I am going to give it at least another 12 months before I even consider buying.Thanks guys.

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If the dollar continues to fall it will boost American exporters and hit UK exporters (that export to US dollar economies). This weakens UK economy=will tend to decrease UK house prices.

However IMO the USD will strengthen against the pound over the course of 2005 as Greenspan hikes US IR's to 3.5/4%. This will cause international capital to dis-invest from the pound and invest in the dollar, weakening the pound and causing UK inflation to rise, leading to upward pressure on UK interest rates.

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